The Nation Newspaper

Category: Money

  • Apex Network takes cryptocurrency trading to students

    Apex Network takes cryptocurrency trading to students

    Apex Network, a financial servicing firm, has partnered the students of the Lagos State University (LASU) to boost cryptocurrency trading.

    At its Lagos Block Festival in Lagos, the firm presented those who attended the event with gifts.

    The gesture was aimed at  celebrating the rebranding of the platform and the introduction of Apex Network version 3.0.

    “Apex Network, which already provides a super-fast, secure and reliable platform which enables its users to easily trade cryptocurrency, sell gift cards at the best rates and process the swift payment of bills, has upped its ante and introduced new and better functions many cannot stop talking about at the event,” it said.

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    Marketing Lead, Apex Network, Gbenga Ogunbiyi said the unique features offered by the firm’s new and improved version enables people to perform numerous activities which was impossible when the platform first launched.

    “With the new version, you can buy crypto with naira, swap your crypto, pay bills, renew your DSTV, GoTV and startimes subscriptions on your mobile device and send money to friends and family,” he said.

    He added that the product also allows people to send money to their friends or family’s accounts. “The receiver must have an account with us to receive these funds,” he added.

  • Naira touches N1,100/$at parallel market

    Naira touches N1,100/$at parallel market

    The naira yesterday closed at N1,100 to dollar at the parallel market due to persisted dollar scarcity.

    The local currency, however, exchanged stronger at N790.68  to dollar at the Investors and Exporters (I&E) window – the official market.

    The Central Bank of Nigeria (CBN) last week said it would occasionally intervene to boost liquidity in the forex market, and stabilise the local currency.

    Dealers and financial experts said the volatility in the market was a fallout of acute dollar scarcity and speculative activities by illegal forex dealers.

    Former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogubunka, said Nigeria’s trade balance had been weakened by its inability to produce and earn forex, a process that has contributed to dollar scarcity.

    To firm up the naira, he said Nigeria must find new ways to boost production to earn more dollars and boost foreign reserves.  Ogubunka, who is also the President, Bank Customers Association of Nigeria, said aside boosting production, there was the need to tackle insecurity to allow farmers go to their farms.

    He said such effort would help increase crop yields and bring more dollar earnings for the economy, adding that that would ,firm up the local currency.

    Read Also: Can CBN rescue naira from free fall?

    According to him,  insecurity and the political uncertainty are delaying several corporate investment decisions that would have brought in more dollars to the economy.

    President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said there was the need to encourage market participants to source forex from independent windows to boost liquidity.

    He called for enabling environment and fair treatment for the players to achieve exchange rate stability.

    He advised that the Federal Government should enhance financial intelligence by tracking people with proceeds of corruption to sanitise the market.

    Gwadabe said many of the people with proceeds from corruption are the ones putting pressure on the forex market through their manipulative actions.

    “The naira is depreciating not by forces of demand and supply, but by the collective action and impact of the people with illicit funds,” he said.

  • UBA opens talks with IFC, Afreximbank, AfDB on $6b loans to SMEs

    UBA opens talks with IFC, Afreximbank, AfDB on $6b loans to SMEs

    The United Bank for Africa (UBA) has begun lending discussions with the International Finance Corporation (IFC), Afreximbank and Africa Development Bank (AfDB) on the best way to disburse the $6 billion loans to Africa Small and Medium Enterprises (SMEs).

    UBA had, working with the Africa Continental Free Trade Agreement (AfCTA), put $6 billion forward for SMEs financing in Africa.

    Speaking on the sidelines of the just-concluded International Monetary Fund (IMF)/ World Bank Annual Meetings in Marrakech, Morocco, Group Managing Director, UBA, Oliver Alawuba, said the bank held discussions with the three global banks on ways to partner to support Africa SMEs and women-led businesses within the continent. 

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    He said the meetings with the development partners were fruitful, adding that UBA will be working with these partners and corporate organisations across Africa to develop the resources and opportunities available in the continent.

    “UBA is a bank focused on Africa development. My presence here for this conference, has been such that we have been inspired by all the developments happening in Africa. I have had fruitful meetings with the development partners who share agenda for Africa development. I also had very good meetings with some of my customers here, who also shared the same development agenda for Africa. And I believe that this is our time,” Alawuba said. 

    According to the bank chief, UBA is present in 20 Africa countries, and four other countries outside Africa.

    “And all we are doing is to show that Africa has tremendous opportunity and we need to have partners and institutions that will be able to harness these opportunities. UBA is well-positioned to facilitate businesses, between Africa and rest of the world, and even among African countries,” Alawuba said.

    On financial inclusion, the bank chief said Africa needs to bring more people into the financial system.

    “The most important thing for Africa today is to drive financial inclusion. We still have a lot of Africans that are left out of the banking industry. That is where UBA comes in. The bank is at the forefront of using digital technology to drive financial inclusion. 

    “And that is important, and we think it is good for us to build strong African institutions that will be able to support infrastructure development, and support SMEs development and the development of our continent, and that is why UBA is here.”

    He said UBA’s sterling performance in the 2022 financial year results and half year results for this year was because its diversification in Africa is beginning to yield a lot of fruits. 

    “And we need to harness that, and we need to go beyond Nigeria to Africa and rest of the world to achieve that opportunities for us in Africa and rest of the world,” he said.

    Speaking further, he said inter-Africa trade is UBA’s area of strength. 

    “Our presence in many African countries is to drive inter-Africa trade. Our partnership with AfCTA is also to drive inter-Africa trade. So, inter-Africa trade is important and Africa needs to trade more with each other, and that would further improve our development,” he said.

  • Africa’s $50b yearly debt service cost worrisome, says Jimoh Ibrahim

    Africa’s $50b yearly debt service cost worrisome, says Jimoh Ibrahim

    By Collins Nweze, Marrakech, Morocco

    The $50 billion yearly debt service cost paid by African economies is worrisome, and does not address the fundamental challenges with the economies, billionaire businessman, Senator Jimoh Ibrahim, has said.

    Speaking on the sidelines at the ongoing World Bank/International Monetary Fund (IMF) yearly meetings in Marrakech, Morocco, he said Africa is hugely in debt, using $50 billion yearly to service debts without paying the debtor. 

    He suggested that the impact of pollution from climate change issues and burning of fossils should be paid as compensation to Africans.

    He said: “This is worrisome to the entire world. What I told the IMF and World Bank is that there is a climate change issue impacting the continent. The carbon dioxide is polluted by the plethora of cars in America and burning of fossils. 

    “This is really affecting Africans and their health. The consequences should be paid by the pollutant and they should pay for the damages that erupts in the African continent, because disaster does not require visa to travel.’’

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    Continuing, Ibrahim asked, who would pay for the burning of fossils and pollution of carbon dioxide in Africa? 

    “If you quantify the amount of damage done to Africa, you can exchange it for Africa’s debts. The IMF is looking at this seriously and they asked me a question: How do we quantify the damages? But I told them, we have data. We don’t produce cars in Africa, but the whole world uses cars.” 

    Ibrahim said these cars are produced in either Germany, America, Russia, China and India. 

    “Imagine the number of cars in the world and burning fossil oil is consequences of all the disasters we see.

    “It means that the whole carbondioxide pollution is coming to Africa and for every conference you have on climate change, America finds it difficult to sign to the agreement of liability and we are saying we must get people to sign to the liability because he who pollutes must pay,” he added.

    Ibrahim said there was a need to get to the data and determine the number of pains to Nigeria arising from generating electricity and heat by burning fossil fuels, which causes a large chunk of global emissions.

  • Experts canvass AI adoption to tackle cyber threats

    Experts canvass AI adoption to tackle cyber threats

    To counter cybercrime, experts and industry leaders have  championed the adoption of Artificial Intelligence technology.

    Speaking at the FITC Cybersecurity Conference yesterday in Lagos, the Cybersecurity Manager, Ernst and Young Global Limited, Kelly Orjiude, recalled Nigeria’s vulnerability, citing a staggering 12.9 million cyber-attacks during the past presidential election. 

    Orjiude advocated the integration of AI-driven technologies. These advanced systems, he explained, could analyse  amounts of data in real-time, enabling the detection of intricate cyber threats while automating incident responses to mitigate potential damages swiftly.

    Orjiude, however, cautioned about the responsible use of AI technology. While it strengthens cybersecurity defences, there exists a risk of misuse for malicious purposes, as seen in instances of AI-driven fraud and misinformation. 

    “In our pursuit of technological advancement, ethical considerations must guide us.

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    “AI is a powerful tool; how we use it determines its impact on society. Responsible AI integration is not just a choice; it’s our moral obligation,” Orjiude emphasised.

    Managing Director, Nigeria Interbank Settlement Systems, Premier Oiwoh stressed the imperative of strengthening Africa’s growth amid cybersecurity challenges. 

    The NIBSS chief, who was represented by the company’s Chief Information Security Officer, Olusola Odediran, said: “There is the need for capacity building, public-private partnerships, and international cooperation.”

    These collaborative efforts, he stated, were essential in developing homegrown solutions tailored to Africa’s unique needs, enhancing the region’s ability to respond effectively to cybersecurity threats

    Founder Holistic Information Security Practitioner Institute, Taiye Lambo, echoed this sentiment, underlining the transformative potential of AI in reshaping Nigeria’s image globally. 

    Chief Executive Officer, FiTC, Chizor Malize said: “Extensive research has shown that Africa is particularly vulnerable to cyber threats due to various factors, including a lack of robust cybersecurity infrastructure, inadequate awareness and education, and the rapid pace of digital adoption without commensurate security measures. 

    “The consequences of a successful cyberattack can be devastating, leading to financial losses, erosion of trust, and even endangering lives through critical infrastructure vulnerabilities.”

  • Nigeria is fourth in African trade barometer

    Nigeria is fourth in African trade barometer

    Stanbic IBTC Holdings, a member of Standard Bank Group, has shared some of its latest findings from the Africa Trade Barometer Issue Three report.

      The report, which assesses key economic indicators in Africa, highlights several noteworthy developments across African countries.

    According to the latest Africa Trade Barometer, Nigeria has moved up four positions from eighth to fourth in the country rankings. The recently launched Africa Trade Barometer provides valuable insights into Africa’s trade dynamics and opportunities.

    This edition highlights Nigeria’s significant role in shaping the continent’s trade landscape, analysing its state and prospects.

    The rankings are based on seven categories, including trade openness, access to finance, and macroeconomic stability.

    Changes in a country’s ranking are driven by changes in their aggregate score and relative ranking against other countries. Rankings are relative to the ten countries in the index and pegged on a scale of zero -100.

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    South Africa has the highest Tradability Index, while Angola has the lowest. Nigeria’s improvement in the Trade Barometer ranking is due to advances in the Quantitative Trade Barometer (QTB) and Survey Trade Barometer (STB) rankings.

    The country moved up from position seven to four in the Standard Bank (SB) QTB ranking and from eight to five in the SB STB ranking. This achievement is attributed to significant improvements in business confidence scores, ease of access to credit, and government support for trading.

    The report also examined Nigeria’s export and import statistics, showcasing its major trading partners and critical industries. By analysing the country’s trade policies and emerging trends, stakeholders gain a holistic understanding of the Nigerian market and its growth potential.

    One of the critical areas of focus within the report is identifying challenges Nigerian businesses face in international trade. It delves into infrastructure gaps, regulatory complexities and logistical bottlenecks; consequently offering insight into strategic measures taken by the Nigerian government to address these issues and enhance trade competitiveness.

    The 2023 African Trade Barometer highlights the policies and initiatives implemented by Nigeria to attract foreign direct investment (FDI) and promote trade diversification. The report explores investment opportunities in sectors such as agriculture, manufacturing, technology, and renewable energy, providing a valuable resource for local and international businesses seeking to expand their operations in Nigeria.

    “We are excited about this comprehensive report, specifically focusing on Nigeria, which plays a pivotal role in African trade,” said Wole Adeniyi, Chief Executive, Stanbic IBTC Bank.

    “Through our detailed analysis, we provide stakeholders with a deep understanding of Nigeria’s trade landscape, the challenges, opportunities and potential for growth. This report will contribute significantly to Africa’s overall trade narrative,” Wole said.

    The 2023 African Trade Barometer is a valuable resource for policymakers, investors, entrepreneurs and researchers interested in unlocking the potential of Africa’s trade ecosystem. By shedding light on Nigeria’s trade dynamics, this report guides informed decision-making, enabling stakeholders to engage effectively with the Nigerian market.

  • Fintechs gain more grounds as CBN tightens regulation

    Fintechs gain more grounds as CBN tightens regulation

    The determination to serve the under-served majority in the Nigerian financial sector has brought more financial technology firms into limelight. But the operators have come to face new challenges of compliance with Central Bank of Nigeria’s (CBN) operational guidelines for banks and other financial institutions, writes COLLINS NWEZE 

    Banking in Nigeria remains an attractive sector, with over N3.7 trillion  in value addition to customers. 

    McKinsey & Company, a global management firm, report says  despite high levels of competition, the majority of consumers remain underserved. 

    Lack of access to services, especially in rural areas, inaffordability, and poor user experience  contribute to the frustration consumers experience across the customer spectrum.

    This has created an opening that fintechs have been quick to take advantage of, with many stepping up to develop enhanced propositions across the value chain to address pain points in affordable payments, quick loans, and flexible savings and investments, among others.

    At the same time, a youthful population, increasing smartphone penetration, and a focused regulatory drive to increase financial inclusion and cashless payments, are combining to create the perfect recipe for a thriving fintech sector. 

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    Nigeria is home to over 200 fintech standalone companies, plus many fintech solutions offered by banks and mobile network operators as part of their product portfolio. 

    Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting 25 per cent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone—second only to Kenya, which attracted $149 million.

    The Central Bank of Nigeria (CBN) has, on the need to boost financial sector security, put the Fintechs under regulatory scrutiny. 

    In many cases, apex bank had, through court order, froze the accounts of some fintechs allegedly involved in fraudulent financial activities. The move were part of the tightened regulatory surveillance to put the operators under check.

  • SIM swap fraud rising, Ecobank alerts

    SIM swap fraud rising, Ecobank alerts

    Ecobank has raised the alarm on the dangers of SIM swap fraud, stressing that  fraudsters could use it to impersonate customers.

    In a message to customers via email, the bank explained that SIM swap fraud occurs when scammers use your phone number to access your accounts. 

    According to the bank, “Scammers impersonate you and trick your mobile phone’s carrier into activating a SIM card, which gives them control over your phone number. It means scammers could potentially enter your username and password when logging onto your online banking platform and then receive the SMS verification code to access your account.

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    “Protect yourself against SIM swaps, don’t share personal information that fraudsters could use to impersonate you (such as your mother’s maiden name or birthplace) on social media. Never reveal your logins and passwords for your mobile phone, online bank, or credit card accounts to anyone. Please always report any suspicious activity.”

    Further, the Pan-African bank reminded the customers that the bank will not ask them to provide their personal or financial information, stressing that when they receive an email that includes a link to a website, they should ensure that the website is legitimate before visiting the site.

    Ecobank further urged customers not to respond to emails, SMS and unsolicited calls from people they don’t know asking for your personal or banking information.

  • Bitcoin mining sustainability spikes by 59%

    Bitcoin mining sustainability spikes by 59%

    The crypto market is evolving, and the sustainability of Bitcoin (BTC) mining is a major part of that evolution. 

    According to CryptoMonday’s presentation on crypto mining in 2021, BTC mining’s reliance on sustainable energy stood at 58.4 per cent in one year. That followed a 59 per cent increase from its 2020 figures of 36.8 per cent. 

    In other words, the premier cryptocurrency is cleaning up its act—quite literally.

    This move to more sustainable energy sources is part of industry-wide efforts to curb environmental damage and greenhouse gas emissions associated with mining operations.

    The shift has been driven by rising electricity costs associated with traditional fossil fuels like coal and natural gas and concerns over their long-term viability, given climate change policies being developed around the globe.

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    CryptoMonday’s Jonathan Merry said: “The BTC industry is taking steps to reduce its carbon footprint. It’s doing so by using renewable energy sources and developing new technologies that will help reduce energy consumption. These efforts have been largely self-funded by miners willing to pay a premium for clean power.”

    The numbers are significant because the electricity consumed by miners has long been a concern for those who care about Bitcoin’s environmental footprint. In fact, it’s one of the biggest criticisms that critics levy against crypto: that it is not environmentally friendly and should be abandoned as soon as possible.

    A significant part of BTC mining relies on fossil fuels (coal and natural gas). China’s crackdown on cryptocurrencies saw some miners migrate to other crypto-friendly destinations. But unlike in China, where the abundance of hydropower made mining ventures sustainable, these new regions are fossil fuel-rich. Thus an uptick in mining activity has seen an escalation in carbon emissions.

    BTC skeptics also point out that BTC mining ventures are reviving decommissioned power plants. However, bringing them back to life is increasing environmental pollution.

    But while Bitcoin was once widely considered among the worst polluters, new data discounts that notion. According to the Bitcoin Mining Council (BMC), BTC mining uses insignificant amounts of energy. As a result, it equally emits negligible amounts of carbon waste.

    BMC affirms that the increase in the adoption of sustainable energy sources has also come with an overall reduction in energy consumption. It insists that energy usage has declined 25 per cent year-on-year  despite the hash rate increasing by 23 per cent. Additionally, mining efficiency has jumped 63 per cent, meaning a lower environmental impact.

  • IMF projects $2tr climate migration investment by 2030

    IMF projects $2tr climate migration investment by 2030

    The International Monetary Fund (IMF) has said by 2030, climate mitigation investment needs will increase to about $2 trillion yearly in emerging market and developing economies (EMDEs).

    The Fund said a substantial investment in low-emissions technologies such as renewable energy is needed to reduce global greenhouse gas emissions to net zero by 2050.

    According to the International Energy Agency,  the climate mitigation investment cash represents about 40 per cent of global investment needs.

    “Our estimates suggest that the share of private finance must increase significantly. By 2030, private finance will have to cover about 80 per cent of the climate mitigation investment needs in EMDEs. Excluding China, the private financing share is even higher—about 90 per cent,’’ it said. 

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    The Fund also directed that private sector will have to cover a major share of the large climate mitigation investment needs in the EMDEs. 

    It explained that EMDEs face challenges in attracting private climate finance such as their often low credit rating, which limits the potential investor base. 

    It said climate policies of major banks and insurance companies are not yet aligned with net zero emission targets. 

    “Despite the growth in sustainable investment funds, a small share of the invested money is dedicated to creating a positive climate impact,” it said. 

    The Fund explain that given the political hurdles to implementing carbon pricing and EMDE-specific challenges, a broad mix of policies is needed to create an attractive environment for private climate mitigation finance in EMDEs. 

    It said structural policies are key to lowering the cost of capital, mobilising domestic financial resources, and improving credit ratings in EMDEs. 

    “Another essential part of the policy mix is financial sector policies, which should refocus on creating climate impact and consider the specific circumstances of EMDEs. In low-income countries additional international support and policy initiative will be needed.

    “The IMF Resilience and Sustainability Facility, by supporting reforms, can help create an enabling investment environment and attract private capital,” the fund said.